As per recent market intelligence analysis by a market research and competitive intelligence provider, with increasing digitalization and ascending demand from the healthcare and BFSI sector, the IBM Watson services market is poised to surge at a CAGR of 30% over the next ten years.
Prospects for IBM Watson services continue to be bullish on the coattails of high traction in healthcare & BFSI sectors, and effectiveness in real-time consumer choice decoding & curtailing process downtime in manufacturing facilities, states the latest market intelligence study.
North America has been envisaged to emerge as the most remunerative market for IBM Watson services, underpinned by demand from regional businesses that seek reinventing themselves for providing differentiated experiences to their clients. Healthcare is set to prevail as the leading industry vertical in the market, trailed by banking, and finance & insurance (BFSI). IBM Watson language services will remain dominant in the market based on service type, accounting for over 3/5 share of the market throughout the forecast period.
The IBM Watson services market is consolidated at the top and fragmented at the bottom due to less investment cost and easy availability of the skilled labour needed for these services.
Key Takeaways from Market Study
The global IBM Watson services market is anticipated to reach a market value of US$ 44.5 Bn by the end of 2031, with an absolute dollar opportunity of US$ 41.3 Mn.
The IBM Watson language service segment is projected to expand at a CAGR of 32% (16X) through 2031.
Apart from SaaS natured commercialization of Watson technology, the company has also created a separate IBM Watson ecosystem for channeling associated products to target customers.
North America leads the global IBM Watson services market accounting for more than 50% of overall revenue generation.
IBM Watson vision services are estimated to progress at a significant CAGR during the forecast period due to high demand from the manufacturing industry.
IBM is strongly focused on partnership agreements to deliver Watson services across regions. For instance, in China, IBM entered into a partnership with Baheal Pharmaceutical Group to provide Watson oncology technology for cancer treatment.
According to an analyst, “healthcare and BFSI are pioneer sectors for IBM Watson service adoption due to their real-time data processing attributes,”
Key providers of IBM Watson services are majorly focusing on partnership agreements to enhance their market presence and overall profitability.
- IBM Corp. is targeting partnerships with local IT service providers rather than establishing its own branches for service offerings across the globe, which benefits both sides. This helps boost the company’s revenue growth and enhance overall market share.
- Various market players such as Accenture, TCS, Capgemini, KPMG, and Deloitte have been focusing on increasing their client base through building internal strategies and providing affordable pricing.
- IBM Corp. has been investing heavily in R&D to transform its cognitive solutions for the healthcare industry.